Rent vs buy in Illinois
Over 7 years at today's numbers, renting comes out ahead in 26 of the 30 cities of 50,000+, buying ahead in 2, with 2 toss-ups.
Rent or buy across Illinois's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Chicago | Toss-up | toss-up, buying ahead by $3k | year 7 | $334,108 | $2,311 |
| Bloomington | Rent | renting wins by $68k | none in 30 years | $268,640 | $1,270 |
| Berwyn | Rent | renting wins by $84k | none in 30 years | $317,986 | $1,485 |
| Tinley Park | Rent | renting wins by $36k | year 18 | $335,016 | $2,181 |
Sources: Zillow Home Value and Observed Rent indexes, plus our rent vs buy method verdicts at 20% down over 7 years.
Our take on Illinois
Illinois leans hard toward renting, and over 7 years renting beats buying in 26 of its 30 biggest cities. Only 2 cities favor buying, and 2 more are toss-ups. For Chicago, it's a $3k toss-up: the $2,311 rent and a $334,108 home break even at year 7. A $618,458 home in pricey Naperville rents for $2,236. There, renting puts you $198k ahead, while buying never breaks even within 30 years.
Beating ownership costs here takes a low home price. Peoria is one of the rare spots where buying wins, and that puts you $15k ahead over 7 years. Against $1,240 rent, a typical home costs $136,279, so you break even in year 4. Renting comes out ahead by $13k in Springfield, where a $174,110 home sits against $1,178 rent, and the two options break even in year 13.
In our view, your tax bill holds the main reason. Property tax runs at 2.01% here, more than double the 0.94% rate in the US. A typical home goes for $296k, and over the last 10 years prices grew 5.5% a year. Homeowners insurance costs you $1,244 a year, which sits under the $1,308 US figure. Median rent is $1,274 a month, below the $1,413 US mark, while 33% of households rent compared with 35% nationwide.
Our take: renting is your best move in almost every Illinois city, thanks to that 2.01% property tax. If you aren't buying a cheap home in a market such as Peoria, rent instead and keep the savings.